On Thursday, South Africa’s RCL Foods (RCLJ.J) said its poultry unit culled 410,000 chickens due to the country’s worst avian flu outbreak, heightening fears of chicken meat and egg shortages.

The bird flu outbreak, which spreads rapidly in an infected flock, causing a high death rate, has already impacted table egg supplies in South Africa.

Producers also warned of chicken meat shortages in the coming weeks.

Rainbow is one of South Africa’s largest chicken producers, supplying retailers and fast food businesses.

“The outbreak has moved at a rapid pace, and the situation is constantly evolving. To date, an estimated 410,000 birds have been culled, which has resulted in an estimated financial impact of 115 million rand ($5.99 million),” RCL Foods said in an update.

The company said it was taking steps to avert supply disruptions, but “there is tension in the supply chain.”

On Wednesday, neighbouring Namibia suspended poultry imports from South Africa, citing the bird flu outbreak.

According to the country’s poultry producers’ association, South Africa only exports between one per cent and two per cent of its production.

Earlier, RCL’s peers, including the country’s largest integrated poultry processor Astral Foods (ARLJ.J) and Quantum Foods (QFHJ.J), said the bird flu outbreak was ravaging a sector that was already burdened by South Africa’s electricity crisis and rising costs. 

(Reuters/NAN)